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How To Start A Dev Tools Company | Startup School

From Y Combinator · Published Jul 20, 2025 · Watch on YouTube

TL;DR

The video teaches how to start a dev tools company, covering founding team composition, idea selection (runtime over build-time), rapid prototyping, go-to-market via open source or usage-based models, and developer-led sales and marketing. The core conclusion is to start immediately, build quickly, spend time with users, launch early, and rely on founders as the best sales and marketing team.

Key insights

  • Runtime ideas (APIs, infrastructure) are must‑have products that align incentives with customer growth, whereas build‑time ideas (QA, testing) are mostly nice‑to‑have and crowded.
  • Libraries and frameworks are hard to monetize unless paired with a hosting service (e.g., Next.js / Vercel).
  • 74% of YC dev tool companies had only tech cofounders (vs. 45% for other YC companies), making a business cofounder unnecessary early on.

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